Moody's maintains PHL investment grade rating

Moody's Investors Service has maintained the Philippines' Baa2 investment grade rating with a stable outlook despite cutting its 2020 growth output forecast.

The debt rater now forecasts the country's GDP to decline by 2.2 percent, an improvement from its earlier projection of a 2.5 percent contraction.

Despite the negative external environment due to the pandemic, Moody's expects the Philippines' real GDP growth to remain robust relative to peers.

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno described Moody's decision as a "vote of confidence in the country's macroeconomic fundamentals and the way the Philippine government is managing the coronavirus pandemic."

Diokno reiterated that the global health crisis "hit the Philippines from a position of strength" due to ample fiscal and monetary space.

He anticipates a less severe contraction for the Philippine economy compared to most countries and expects a strong rebound of an estimated 7.8 percent in 2021.

Finance Secretary Carlos Dominguez III stated that Moody's credit opinion validates the country's resilience, its young and productive labor force, and its conservative economic and fiscal policies.